The global food ingredients market size is expected to reach USD 174.15 Billion in 2030 and register a revenue CAGR of 6.7% over the forecast period, according to latest report. The rising trend of health awareness among the population is expected to be a major driving factor for the growth of the market. The wide range of applications of food ingredients in processed food & beverage items is further expected to contribute to the growth of the market over the forecast period.
The ever-changing consumer preferences and constantly evolving technology are two other important factors that are expected to have a positive impact on the growth of the food ingredients market. In addition, the increasing disposable income and changing lifestyle of people in developing countries is expected to create new opportunities for market players in the coming years.
Increasing consumer preference for vegan and dietary food items is projected to fuel the growth of the food ingredients market. Currently, a large section of consumers are avoiding all animal products including dairy, eggs, and honey in their diet. This is because of the ethical concerns associated with the meat industry and the health benefits of plant-based food items.
The rising awareness about the potential health benefits of natural and organic food ingredients is also expected to drive the growth of this market. In recent years, there has been a significant increase in the number of health-conscious consumers who are willing to pay premium prices for natural and organic food items. This is because these products are free from harmful chemicals and preservatives, and are rich in vitamins and minerals.
The increasing disposable incomes of consumers in developing countries is another major factor driving the growth of the food ingredients market. As incomes rise, consumers are able to afford more expensive and premium food items. This is expected to lead to an increase in the demand for food ingredients, as manufacturers will look to tap into this growing market.
However, concerns regarding lack of standardization and the use of preservatives in food ingredients are anticipated to restraint market growth. Rapid changes in lifestyles and eating habits, along with a significant increase in disposable incomes, have resulted in a rise in the demand for processed and packaged foods globally. This, in turn, is expected to drive the food ingredients market during the forecast period.
The ever-changing consumer preferences and constantly evolving technology are two other important factors that are expected to have a positive impact on the growth of the food ingredients market. In addition, the increasing disposable income and changing lifestyle of people in developing countries is expected to create new opportunities for market players in the coming years.
Increasing consumer preference for vegan and dietary food items is projected to fuel the growth of the food ingredients market. Currently, a large section of consumers are avoiding all animal products including dairy, eggs, and honey in their diet. This is because of the ethical concerns associated with the meat industry and the health benefits of plant-based food items.
The rising awareness about the potential health benefits of natural and organic food ingredients is also expected to drive the growth of this market. In recent years, there has been a significant increase in the number of health-conscious consumers who are willing to pay premium prices for natural and organic food items. This is because these products are free from harmful chemicals and preservatives, and are rich in vitamins and minerals.
The increasing disposable incomes of consumers in developing countries is another major factor driving the growth of the food ingredients market. As incomes rise, consumers are able to afford more expensive and premium food items. This is expected to lead to an increase in the demand for food ingredients, as manufacturers will look to tap into this growing market.
However, concerns regarding lack of standardization and the use of preservatives in food ingredients are anticipated to restraint market growth. Rapid changes in lifestyles and eating habits, along with a significant increase in disposable incomes, have resulted in a rise in the demand for processed and packaged foods globally. This, in turn, is expected to drive the food ingredients market during the forecast period.
Some Key Highlights in the Report
- In February 2021, International Flavor & Fragrances, Inc. (IFF), a leading manufacturer of flavors, fragrances, and cosmetic ingredients, announced the launch of its new food ingredients business, IFF Food Ingredients. The new business will focus on providing natural flavors, colorants, and other food ingredients to the food and beverage industry. IFF Food Ingredients will offer a wide range of products, including natural flavors, colorants, and other food ingredients. The new business will also provide technical support and customer service.
- Functional ingredients segment is expected to grow at the highest CAGR during the forecast period. Functional ingredients are substances that offer a number of health benefits and are often used as dietary supplements. Functional ingredients are generally classified into vitamins, minerals, probiotics, prebiotics, omega-3 fatty acids, phytochemicals, and protein. Probiotics and protein are expected to be the fastest-growing segments in the functional ingredients market during the forecast period. Probiotics offer a number of health benefits such as improving digestion, boosting immunity, and reducing allergies. Protein is an essential macronutrient that helps in cell regeneration, tissue repair, and muscle growth.
- North America food ingredients market is expected to account for largest revenue share in the global market over the forecast period.. The US and Canada are the major markets for food ingredients in North America. The market in this region is driven by the growing demand for processed and convenience food, changing lifestyle, and increasing disposable income. Rapid urbanization and the resulting changes in food habits are also fueling the growth of the food ingredients market in North America.
- The US is the largest market for food ingredients in North America, followed by Canada. The US food ingredients market is expected to grow at a CAGR of 5.6% during the forecast period. The country’s processed food industry is the largest in the world, and is projected to grow at a CAGR of 3.5% during the forecast period. The growing demand for processed food is driving the growth of the food ingredients market in the US.
- The food ingredients market in Canada is expected to grow at a CAGR of 4.9% during the forecast period. The country’s processed food industry is the second largest in North America, and is projected to grow at a CAGR of 3.6% during the forecast period. The growing demand for processed food is driving the growth of the food ingredients market in Canada.
For this report, the publisher has segmented the global food ingredients market based on ingredient type, application, benefit, and region:
Ingredient Type Outlook (Revenue, USD Billion; 2018-2030)
- Vegetable Oils & fats
- Natural Sweeteners
- Natural Flavorings & colors
- Enzymes & Antioxidants
- Functional Ingredients
- Others
Application Outlook (Revenue, USD Billion; 2018-2030)
- Chocolates & Confectionery
- Bakery
- Frozen Foods
- Functional Foods
- Others
Benefit Outlook (Revenue, USD Billion; 2018-2030)
- Immunity
- Weight Management
- Bone & Gut Health
- Cardiovascular Health
- Others
Regional Outlook (Revenue, USD Billion; 2018-2030)
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Sweden
- BENELUX
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Rest of APAC
- Latin America
- Brazil
- Rest of LATAM
- Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Rest of MEA
Table of Contents
Chapter 1. Market Synopsis
Chapter 2. Executive Summary
Chapter 4. Functional Food Ingredients Market Segmentation & Impact Analysis
Chapter 5. Functional Food Ingredients Market By Product Origin Insights & Trends
Chapter 6. Functional Food Ingredients Market By Application Insights & Trends
Chapter 7. Functional Food Ingredients Market By Type Insights & Trends
Chapter 8. Functional Food Ingredients Market Regional Outlook
Chapter 9. Competitive Landscape
Chapter 10. Company Profiles
Companies Mentioned
- Cargill Incorporated.
- The Archer-Daniels-Midland Company
- Koninklijke DSM N.V.
- BASF SE
- Tate & Lyle
- DuPont de Nemours Inc.
- Ajinomoto Co. Inc.
- Arla Foods amba
- Kerry Group
- Ingredion Incorporated